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Rigel Resource Acquisition Corp. - RRAC

  • Commons

    $9.94

    +0.00%

    RRAC Vol: 0.0

  • Warrants

    $0.21

    +0.00%

    RRAC+ Vol: 0.0

  • Units

    $10.03

    +0.00%

    RRAC= Vol: 0.0

Average: 0
Rating Count: 0
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SPAC Stats

Market Cap: 298.2M
Average Volume: 89.6K
52W Range: $9.75 - $10.46
Weekly %: +0.10%
Monthly %: +0.20%
Inst Owners: 0

Info

Target: Searching
Days Since IPO: 239
Unit composition:
Each unit has an offering price of $10.00 and consists of one Class A ordinary share and one-half of one redeemable warrant
Trust Size: 25000000.0M

Management

Directors, Director Nominees and Officers,” “Management — Conflicts of Interest” and “Certain Relationships and Related Party Transactions.” The nominal purchase price paid by our sponsor for the founder shares may significantly dilute the implied value of your public shares in the event we consummate an initial business combination, and our sponsor is likely to make a substantial profit on its investment in us in the event we consummate an initial business combination, even if the business combination causes the trading price of our ordinary shares to materially decline. While we are offering our units at an offering price of $10.00 per unit and the amount in our trust account is initially anticipated to be $10.20 per public share, implying an initial value of $10.20 per public share, our sponsor paid only a nominal aggregate purchase price of $25,000 for the founder shares, or approximately $0.004 per share. As a result, the value of your public shares may be significantly diluted in the event we consummate an initial business combination. For example, the following table shows the public shareholders’ and sponsor’s investment per share and how that compares to the implied value of one of our shares upon the consummation of our initial business combination if at that time we were valued at $255,000,000, which is the amount we would have for our initial business combination in the trust account assuming the underwriters’ over-allotment option is not exercised, no interest is earned on the funds held in the trust account, and no public shares are redeemed in connection with our initial business combination. At such valuation, each of our ordinary shares would have an implied value of $8.16 per share, which is a 18.4% decrease as compared to the initial implied value per public share of $10.20. Public shares 25,000,000 Founder shares 6,250,000 Total shares 31,250,000 Total funds in trust available for initial business combination(1) $ 255,000,000 Implied value per share $ 8.16 Public shareholders’ investment per share(2) $ 10.00 Sponsor’s investment per founder share(3) $ 0.004 (1)Does not take into account other potential impacts on our valuation at the time of the business combination, such as the value of our public and private warrants, the trading price of our public shares, the business combination transaction costs (including payment of $8,750,000 of deferred underwriting commissions), any equity issued or cash paid to the target’s sellers or other third parties, or the target’s business itself, including its assets, liabilities, management and prospects. (2)While the public shareholders’ investment is in both the public shares and the public warrants, for purposes of this table the full investment amount is ascribed to the public shares only. (3)The sponsor’s total investment in the equity of the company, inclusive of the founder shares and the sponsor’s 11,740,000 investment in the private placement warrants, is $11,765,000. For the purposes of this table, the full investment amount is ascribed to the founder shares only. Note that redemptions of our public shares in connection with our initial business combination would further reduce the implied value of our ordinary shares. For instance, in the example above, if 50% of the public shares were redeemed in connection with our initial business combination, the implied value per ordinary share would be $6.33. While the implied value of our public shares may be diluted, the implied value of $8.16 per share in the example above would represent a significant implied profit for our sponsor relative to the initial purchase price of the founder shares. Our sponsor has committed to invest an aggregate of $11,765,000 in us in connection with this offering, comprised of the $25,000 purchase price for the founder shares and the $11,740,000 purchase price for the private placement warrants. At $8.16 per share, the 6,250,000 founder shares would have an aggregate implied value of $51,000,000. As a result, even if the trading price of our ordinary shares significantly declines (whether because of a substantial amount of redemptions of our public shares or for any other reason), our sponsor will stand to make significant profit on its investment in us. In addition, our sponsor could potentially recoup its entire investment in us even if the trading price of our ordinary shares were as low as $1.88 per share and even if the private placement warrants are worthless. As a result, our sponsor is likely to make a substantial profit on its investment in us even if we select and consummate an initial business combination that causes the trading price of our ordinary shares to decline, while our public shareholders who purchased their units in this offering could lose significant value in their public shares. Our sponsor may therefore be economically incentivized to consummate an initial business combination with a riskier, weaker-performing or less-established target business than would be the case if our sponsor had paid the same per share price for the founder shares as our public shareholders paid for their public shares. 70 Table of Contents Our directors, officers, security holders and their respective affiliates may have competitive pecuniary interests that conflict with our interests. We have not adopted a policy that expressly prohibits our directors, officers, security holders or their respective affiliates from having a direct or indirect pecuniary or financial interest in any investment to be acquired or disposed of by us or in any transaction to which we are a party or have an interest. In fact, we may enter into a business combination with a target business that is affiliated with our sponsor, our directors or officers, although we do not intend to do so. Nor do we have a policy that expressly prohibits any such persons from engaging for their own account in business activities of the types conducted by us. Accordingly, such persons or entities may have a conflict between their interests and ours. In particular, affiliates of our sponsor have interests in a diverse set of industries. As a result, there may be substantial overlap between companies that would be a suitable business combination for us and companies that would make an attractive target for such other affiliates. We may engage our underwriter or one of its respective affiliates to provide additional services to us after this offering, which may include acting as M&A advisor in connection with an initial business combination or as placement agent in connection with a related financing transaction. Our underwriter is entitled to receive deferred underwriting commissions that will be released from the trust account only upon a completion of an initial business combination. These financial incentives may cause them to have potential conflicts of interest in rendering any such additional services to us after this offering, including, for example, in connection with the sourcing and consummation of an initial business combination. We may engage our underwriter or one of its respective affiliates to provide additional services to us after this offering, including, for example, identifying potential targets, providing M&A advisory services, acting as a placement agent in a private offering or arranging debt financing transactions. We may pay the underwriter or its affiliate fair and reasonable fees or other compensation that would be determined at that time in an arm’s-length negotiation; provided that no agreement will be entered into with the underwriter or its respective affiliates and no fees or other compensation for such services will be paid to the underwriter or its respective affiliates prior to the date that is 60 days from the date of this prospectus, unless such payment would not be deemed underwriter’s compensation in connection with this offering. The underwriter is also entitled to receive deferred underwriting commissions that are conditioned on the completion of an initial business combination. The underwriter’s or its respective affiliates’ financial interests tied to the consummation of a business combination transaction may give rise to potential conflicts of interest in providing any such additional services to us, including potential conflicts of interest in connection with the sourcing and consummation of an initial business combination. We may engage our sponsor or an affiliate of our sponsor as an advisor or otherwise with respect to our business combinations and certain other transactions. Any salary or fee in connection with such engagement may be conditioned upon the completion of such transactions. This financial interest in the completion of such transactions may influence the advice such entity provides. We may engage our sponsor or an affiliate of our sponsor as an advisor or otherwise in connection with our initial business combination and certain other transactions and pay such person or entity a salary or fee in an amount that constitutes a market standard for comparable transactions. Pursuant to any such engagement, such person or entity may earn its salary or fee upon closing of the initial business combination. The payment of such salary or fee would likely be conditioned upon the completion of the initial business combination. Therefore, such persons or entities may have additional financial interests in the completion of the initial business combination. These financial interests may influence the advice such entity provides us, which advice would contribute to our decision on whether to pursue a business combination with any particular target 71 Table of Contents Risks Relating to Our Securities You will not have any rights or interests in funds from the trust account, except under certain limited circumstances. To liquidate your investment, therefore, you may be forced to sell your public shares and/or warrants, potentially at a loss. Our public shareholders will be entitled to receive funds from the trust account only upon the earliest to occur of: (1) our completion of an initial business combination, and then only in connection with those Class A ordinary shares that such shareholder properly elected to redeem, subject to the limitations described herein; (2) the redemption of any public shares properly submitted in connection with a shareholder vote to amend our amended and restated memorandum and articles of association (A) to modify the substance or timing of our obligation to allow redemption in connection with our initial business combination or to redeem 100% of our public shares if we do not complete our initial business combination within 18 months (or up to 24 months if the sponsor exercises its extension options) from the closing of this offering or (B) with respect to any other provision relating to shareholders’ rights or pre-initial business combination activity; and (3) the redemption of our public shares if we have not completed an initial business combination within 18 months (or up to 24 months if the sponsor exercises its extension options) from the closing of this offering, subject to applicable law. In no other circumstances will a shareholder have any right or interest of any kind to or in the trust account. Holders of warrants will not have any right to the proceeds held in the trust account with respect to the warrants. Accordingly, to liquidate your investment, you may be forced to sell your public shares and/or warrants, potentially at a loss. The NYSE may delist our securities from trading on its exchange, which could limit investors’ ability to make transactions in our securities and subject us to additional trading restrictions. We intend to apply to have our units listed on the NYSE on or promptly after the date of this prospectus and our Class A ordinary shares and warrants listed on or promptly after their date of separation. Although after giving effect to this offering we expect to meet the minimum initial listing requirements set forth in the rules of the NYSE, we cannot assure you that our securities will be, or will continue to be, listed on the NYSE in the future or prior to our initial business combination. In order to continue listing our securities on the NYSE prior to our initial business combination, we must maintain certain financial, distribution and share price levels. Generally, we must maintain a minimum number of holders of our securities (generally 300 public shareholders). Additionally, in connection with our initial business combination, we will be required to demonstrate compliance with the NYSE’s initial listing requirements, which are more rigorous than the NYSE’s continued listing requirements, in order to continue to maintain the listing of our securities on the NYSE. For instance, in order for our Class A ordinary shares to be listed upon the consummation of our initial business combination, at such time, our share price would generally be required to be at least $4.00 per share, our global market capitalization would be required to be at least $200,000,000, the aggregate market value of publicly-held shares would be required to be at least $100,000,000 and we would be required to have at least 400 round lot holders. We cannot assure you that we will be able to meet those initial listing requirements at that time. If the NYSE delists any of our securities from trading on its exchange and we are not able to list our securities on another national securities exchange, we expect such securities could be quoted on an over-the-counter market. If this were to occur, we could face significant material adverse consequences, including: ●a limited availability of market quotations for our securities; ●reduced liquidity for our securities; ●a determination that our Class A ordinary shares are a “penny stock” which will require brokers trading in our Class A ordinary shares to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our securities; ●a limited amount of news and analyst coverage; and ●a decreased ability to issue additional securities or obtain additional financing in the future. 72 Table of Contents The National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the sale of certain securities, which are referred to as “covered securities.” Because we expect that our units and eventually our Class A ordinary shares and warrants will be listed on the NYSE, our units, Class A ordinary shares and warrants will qualify as covered securities under such statute. Although the states are preempted from regulating the sale of covered securities, the federal statute does allow the states to investigate companies if there is a suspicion of fraud, and, if there is a finding of fraudulent activity, then the states can regulate or bar the sale of covered securities in a particular case. While we are not aware of a state having used these powers to prohibit or restrict the sale of securities issued by blank check companies, other than the State of Idaho, certain state securities regulators view blank check companies unfavorably and might use these powers, or threaten to use these powers, to hinder the sale of securities of blank check companies in their states. Further, if we were no longer listed on the NYSE, our securities would not qualify as covered securities under such statute and we would be subject to regulation in each state in which we offer our securities. You will not be permitted to exercise your warrants unless we register and qualify the issuance of the underlying Class A ordinary shares or certain exemptions are available. If the issuance of the Class A ordinary shares upon exercise of the warrants is not registered, qualified or exempt from registration or qualification under the Securities Act and applicable state securities laws, holders of warrants will not be entitled to exercise such warrants and such warrants may have no value and expire worthless. In such event, holders who acquired their warrants as part of a purchase of units will have paid the full unit purchase price solely for the Class A ordinary shares included in the units. While we have registered the Class A ordinary shares issuable upon exercise of the warrants under the Securities Act as part of the registration statement of which this prospectus forms a part, we do not plan on keeping a prospectus current until required to do so pursuant to the warrant agreement. Pursuant to terms of the warrant agreement, we have agreed that, as soon as practicable, but in no event later than 15 business days after the closing of our initial business combination, we will use our commercially reasonable efforts to file with the SEC a post-effective amendment to the registration statement of which this prospectus forms a part or a new registration statement covering the issuance of such shares, and we will use our commercially reasonable efforts to cause the same to become effective within 60 business days after the closing of our initial business combination and to maintain the effectiveness of such registration statement and a current prospectus relating to those Class A ordinary shares until the warrants expire or are redeemed. We cannot assure you that we will be able to do so if, for example, any facts or events arise which represent a fundamental change in the information set forth in the registration statement or prospectus, the financial statements contained or incorporated by reference therein are not current, complete or correct or the SEC issues a stop order. If the shares issuable upon exercise of the warrants are not registered under the Securities Act in accordance with the above requirements, we will be required to permit holders to exercise their warrants on a cashless basis, in which case, the number of Class A ordinary shares that you will receive upon cashless exercise will be based on a formula subject to a maximum amount of shares equal to 0.361 Class A ordinary shares per warrant (subject to adjustment). However, no warrant will be exercisable for cash or on a cashless basis, and we will not be obligated to issue any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of the exercising holder, or an exemption from registration is available. Notwithstanding the above, if our Class A ordinary shares are at the time of any exercise of a warrant not listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, we may, at our option, require holders of public warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event we so elect, we will not be required to file or maintain in effect a registration statement, but we will use our commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. In no event will we be required to net cash settle any warrant, or issue securities or other compensation in exchange for the warrants in the

SEC Filings

Form Type Form Description Filing Date Document Link
SC 13G FORM SC 13G 2022-06-16 https://www.sec.gov/Archives/edgar/data/1860879/000106299322014969/formsc13g.htm
8-K 8-K 2022-05-24 https://www.sec.gov/Archives/edgar/data/1860879/000182912622011742/rigelresources_8k.htm
10-Q 10-Q 2022-05-16 https://www.sec.gov/Archives/edgar/data/1860879/000182912622011135/rigelresources_10q.htm
10-K 10-K 2022-03-31 https://www.sec.gov/Archives/edgar/data/1860879/000182912622007192/rigelresources_10k.htm
SC 13G SC 13G 2022-02-14 https://www.sec.gov/Archives/edgar/data/1860879/000182912622003606/rigelresource_sc13g.htm
SC 13G SC 13G 2022-02-08 https://www.sec.gov/Archives/edgar/data/1860879/000110465922013400/tm225488d25_sc13g.htm
8-K 8-K 2022-01-07 https://www.sec.gov/Archives/edgar/data/1860879/000182912622000594/rigelresources_8k.htm
8-K 8-K 2021-11-16 https://www.sec.gov/Archives/edgar/data/1860879/000182912621014272/rigelresource_8k.htm
SC 13G SCHEDULE 13G 2021-11-12 https://www.sec.gov/Archives/edgar/data/1860879/000119312521327189/d435489dsc13g.htm
8-K 8-K 2021-11-09 https://www.sec.gov/Archives/edgar/data/1860879/000182912621013953/rigelresource_8k.htm
424B4 424B4 2021-11-08 https://www.sec.gov/Archives/edgar/data/1860879/000182912621013853/rigelresourceacq_424b4.htm
EFFECT 2021-11-04 https://www.sec.gov/Archives/edgar/data/1860879/999999999521004207/xslEFFECTX01/primary_doc.xml
S-1MEF S-1MEF 2021-11-04 https://www.sec.gov/Archives/edgar/data/1860879/000182912621013734/rigelresourcesacq_s1mef.htm
3 FORM 3 SUBMISSION 2021-11-04 https://www.sec.gov/Archives/edgar/data/1860879/000120919121063033/xslF345X02/doc3.xml
3 FORM 3 SUBMISSION 2021-11-04 https://www.sec.gov/Archives/edgar/data/1860879/000120919121063032/xslF345X02/doc3.xml
3 FORM 3 SUBMISSION 2021-11-04 https://www.sec.gov/Archives/edgar/data/1860879/000120919121063031/xslF345X02/doc3.xml
3 FORM 3 SUBMISSION 2021-11-04 https://www.sec.gov/Archives/edgar/data/1860879/000120919121063029/xslF345X02/doc3.xml
3 FORM 3 SUBMISSION 2021-11-04 https://www.sec.gov/Archives/edgar/data/1860879/000120919121063028/xslF345X02/doc3.xml
3 FORM 3 SUBMISSION 2021-11-04 https://www.sec.gov/Archives/edgar/data/1860879/000120919121063027/xslF345X02/doc3.xml
3 FORM 3 SUBMISSION 2021-11-04 https://www.sec.gov/Archives/edgar/data/1860879/000120919121063026/xslF345X02/doc3.xml
3 FORM 3 SUBMISSION 2021-11-04 https://www.sec.gov/Archives/edgar/data/1860879/000120919121063025/xslF345X02/doc3.xml
CERT NYSE CERTIFICATION 2021-11-04 https://www.sec.gov/Archives/edgar/data/1860879/000087666121001578/RRAC110421.pdf
8-A12B 8-A12B 2021-11-04 https://www.sec.gov/Archives/edgar/data/1860879/000182912621013522/rigelresource_8a12b.htm
S-1 S-1 2021-10-19 https://www.sec.gov/Archives/edgar/data/1860879/000182912621012235/rigelresource_s1.htm
DRS/A 2021-07-02 https://www.sec.gov/Archives/edgar/data/1860879/000182912621006028/filename1.htm
DRS 2021-06-17 https://www.sec.gov/Archives/edgar/data/1860879/000182912621005252/filename1.htm